Buying a home in the United States may come with unexpected fees and costs that buyers, especially first-time homebuyers, may not be aware of.
In the U.S., buyers who are not paying for a home in cash are faced with monthly mortgage payments and a down payment typically ranging between 0% to 20%. While these costs are routine, other expenses, such as appraisal costs, loan origination fees, and property taxes, often catch buyers by surprise.
The unexpected additional fees for homebuying can go from $11,000 to almost $18,000, depending on the state. Frontdoor, a home services company, recently published a report where it analyzed data from for-sale-by-owner site Houzeo to determine the amount of additional charges homebuyers pay for purchasing a median-priced property.
3 States With the Highest Unexpected Property Fees
Hawaii
Hawaii has the highest living costs anywhere in the United States, according to data from the Missouri Economic Research and Information Center. It is also the state with the highest unexpected property fees, with homebuyers shelling out an additional $17,966.04 on top of the down payment and other costs associated with buying a house.
California
Following Hawaii is California, where home buyers pay an additional $14,693.55 of unexpected property fees. With a median home sale price of $673,333, the unexpected property fees account for 2% of the property price.
Maryland
Ranking third for the highest unexpected property fees is Maryland, where buyers spend an additional $14,614.46 on top of the usual costs of homebuying. That being said, Maryland ranks third on the list of states that pay the highest unexpected fees as a percentage of the median home purchase price.
10 States With the Highest Unexpected Property Fees
Hawaii
Median home price: $706,508
Unexpected fees: $17,966.04
California
Median home price: $673,333
Unexpected fees: $14,693.55
Maryland
Median home price: $358,600
Unexpected fees: $14,614.46
Delaware
Median home price: $326,483
Unexpected fees: $13,934.88
Vermont
Median home price: $327,672
Unexpected fees: $13,719.87
New Hampshire
Median home price: $423,333
Unexpected fees: $13,480.89
Massachusetts
Median home price: $528,333
Unexpected fees: $12,535.50
New Jersey
Median home price: $433,333
Unexpected fees: $12,362.75
New York
Median home price: $658,333
Unexpected fees: $12,303.95
Washington
Median home price: $526,633
Unexpected fees: $11,400.60
